XRP price crashed to a crucial support level on Monday morning, signaling that bears are about to prevail and push it lower.

input: XRP price crashed to a crucial support level on Monday morning, signaling that bears are about to prevail and push it lower.

The article discusses the possibility of a steep decline in XRP price if it fails to hold a crucial support level.

Key takeaways:

* XRP price has dropped to a key support at $1.9522.

* If this support is lost, XRP could continue down to $1.1162.

* There are also signs of the Wyckoff Distribution Phase, which could lead to a markdown phase.

* The 200-day and 50-day W averages are about to form a death cross, which could trigger more weakness.

The price of XRP dropped to a crucial support level on Monday morning, signaling that bears are about to prevail and push it lower.

The RSI also showed that the selling pressure was strong.

Relative Strength Index (RSI)

The RSI dropped further into the oversold territory. It now trades at 26.5, signaling that the bears are in control and may continue pushing the price lower. However, it’s worth noting that the RSI has shown some resilience, failing to move below the 20 overbought, oversold levels several times since November last year. This suggests that a strong rebound may occur if the sellers become exhausted.

Crucial Support Level

As reported by Benzinga earlier, the cryptocurrency price has now dropped by 42% from its highest point this year.

Its decline also pushed it to the neckline of the head and shoulders pattern, a popular bearish sign. This pattern comprises a head, two shoulders, and a neckline. Usually, a strong bearish breakout is confirmed when it drops below the neckline, which is about to happen.

The distance between the head and the neckline is 42%. Measuring that same distance from the neckline indicates an XRP price target of $1.1162, its lowest level since November of last year.

Head And Shoulders Pattern

Head and shoulders patterns are reversal patterns that usually mark the end of a bull trend. They are formed by three peaks, with the middle peak (the head) being higher than the other two peaks (the shoulders).

This pattern also has a neckline, which is a line connecting the lows of the two shoulders. The neckline is usually sloping upwards, which indicates that the sellers are becoming stronger.

A breakout occurs when the price moves below the neckline. This breakout signals a continuation of the bear trend, and its strength is usually measured by the height of the pattern, which is the distance between the neckline and the head.

In the case of XRP, the neckline is at around $1.95, and the head is at around $3.4. This means that the pattern's height is about $1.44.

To calculate the potential downside move, traders can subtract the pattern's height from the breakout point. In this case, breakout point is $1.95, and the pattern's height is $1.44. This suggests that XRP could continue falling to around $0.51 (1.95-1.44).

However, it’s important to consider that technical analysis can be subjective, and traders may use different methods to identify patterns and levels. Additionally, market trends can be influenced by various factors, and past performance is not necessarily indicative of future results.